Shares of Zee Entertainment Enterprises Ltd (ZEEL) tanked more than 30% in a single session after Sony Pictures Networks India sent a termination notice for their $10 billion merger after two years of hectic negotiations. 

ZEEL shares hit an intraday low of Rs 155, which is 33.02% lower than its previous closing price on the National Stock Exchange (NSE). At 3 pm, the stock was trading 32.56% lower at Rs 156.05. 

In an exchange filing dated January 22, Zee Entertainment announced that Sony Group sent a termination letter to the media network to cancel the merger with its India unit and to seek a termination fee of $90 million for alleged breaches of the merger agreement terms by ZEEL. 

In a statement, Sony said that Sony Pictures Networks India issued a notice to ZEEL on January 22 to terminate the definitive agreements as the closing conditions of the merger were not satisfied, and the discussion period has expired without an agreement upon an extension of the End Date. 

Zee Entertainment refutes all the claims and assures that it will take the necessary actions, including legal action and contesting them in the arbitration proceedings. 

The termination of the merger is negative for both companies, the same way as it was advantageous for both. Following the news of the merger deal termination, several brokerage firms downgraded the media stock.